The Australian Council of Trade Unions (ACTU) has called for a 5% increase to award wages and the national minimum wage as part of the Fair Work Commission’s annual wage review. The union argues the increase is necessary to help low-paid workers cope with mounting cost-of-living pressures, particularly rising fuel prices linked to the Middle East conflict and ongoing interest rate increases.

March 26 2026

ACTU Pushes for 5% Minimum Wage Increase Amid Rising Living Costs

The Australian Council of Trade Unions (ACTU) has called for a 5% increase to award wages and the national minimum wage as part of the Fair Work Commission’s annual wage review. The union argues the increase is necessary to help low-paid workers cope with mounting cost-of-living pressures, particularly rising fuel prices linked to the Middle East conflict and ongoing interest rate increases.

ACTU Secretary Sally McManus said the proposed increase would be affordable, estimating it would add only around 0.6% to the national wage bill. She argued that workers on the lowest incomes should not see their living standards decline due to broader economic factors, including monetary policy decisions and international economic developments.

According to the ACTU, workers reliant on awards are among those most affected by housing costs. McManus noted that 41% of award-reliant workers are renters, compared with 31% of the adult population, while 44% are paying mortgages compared with 35% overall.

The union also contends the current national minimum wage of $948 per week is insufficient to maintain a reasonable standard of living. Based on Fair Work Commission budget standards research, McManus said a full-time worker living alone would require about $262 more per week to achieve a healthy living standard.

If granted, the ACTU’s claim would raise the national minimum wage from $24.95 to $26.19 per hour, increasing weekly earnings from $948 to $995.40. The benchmark C10 rate in the Manufacturing Award would rise from $28.12 per hour to $29.53.

The call comes as inflation remains elevated, with the CPI rising 3.8% over the year to January, while fuel price increases are expected to place further pressure on household budgets. Last year’s annual wage review delivered a 3.5% increase in award wages and the national minimum wage.